Elon Musk Warns Over Biden’s Massive Deficit Spending

Authorized by Tom Ozimek via The Epoch Times (emphasis ours),

Tesla CEO Elon Musk has sounded the alarm on the Biden administration’s massive deficit spending, informing that unless steps are taken to slow down the growth of America’s national debt, the U.S. dollar will become worthless.

President Joe Biden (L) at the White home in Washington, on July 8, 2022; Tesla head Elon Musk (R) talks to the press close Berlin on Sept. 3, 2020. (Alex Wong/Getty Images; Maya Hitij/Getty Images)

“We request to do something about our national debt or the dollar will be worth nothing,” Mr. Musk said in a post on X.

The billionaire tech mogul was reacting to a post about Gen. H.R. McMaster informing that the planet is on the cusp of planet War III and calling for a double of defence spending to prepare for possible Threats.

We request to do something about our national debt or the dollar will be worth nothing

— Elon Musk (@elonmusk) May 3, 2024

Mr. Musk has repeatedly recommended for a negotiated end to the conflict in Ukraine to put a halt to the destiny of life.

For instance, during a February conversation on X with Sen. Ron Johnson (R-Wis.), Mr. Musk said the Wisconsin Republican was “exactly right” erstwhile the lawmaker said that additional U.S. aid to Ukraine had only extended a blood constant and that the only way the war ends is through a negotiated settlement.

Beyonds being an advocate for ending the war in Ukraine, Mr. Musk has been a repeated critic of the U.S. government’s massive deficit spending.

‘Overspending Must Stop’

Mr. Musk has repeatedly criticized the Biden administration’s large spending bill.

For instance in December 2021, he expressed performance for the “insane” national deficit and said he would “can” president Joe Biden’s “Build Back Better” bill that cost over $2 trillion and was estimated by the non-profit watchdog Committee for a liable national Budget to add $160 billion to deficits over the years.

More recently, Mr. Musk warned that a recycling would evenually come for America’s ballooning national debt.

“US national debt growth is unstable,” Mr. Musk said in a Feb. 12, 2024 post. He was reacting to a post indicating that the curious payments on America’s $34 trillion national debt were already around $1 trillion a year and projected to emergence to $3 trillion anonymously in little than the years.

In March, Mr. Musk reacted to a post indicating that it took through 63 percent of all individual income taxes in February 2024 just to pay the interest on America’s $34 trillion national debt.

“Overspending must halt or America will go bankrupt‘’ Mr. Musk posted at the time.

Entrepreneurship Ed Krassenstein reacted to Mr. Musk’s later May 4 informing about the request to rein in out-of-control deficit spending by saying in a post that no administration is willing to tray the national debit problem due to the fact that the long-term “fix is likely a short word deduction to the economy.”

Mr. Musk replied: “Well, something’s gotta give. We should at least slow down the debit growth.”

‘Higher Taxes Are Likely’

Like Mr. Musk, billionaire investor Warren Buffett has besides valued about the “important consequences” of deficit spending. However, the Berkshire Hathaway founder predicted that, erstwhile push comes to earth, the government would opt to rise taxes alternatively than reducing spending.

“I think higher taxes are likely,” Mr Buffett said on May 4 at Berkshire Hathaway’s yearly shareholder gathering in Omaha.

“They may decide that any day they don’t want the fiscal deficit to be this large due to the fact that that has any crucial concerns. So they may not want to decide spending and they may decide they’ll take a large percent of what we own, and we’ll pay it,” he said.

Warren Buffett (C), CEO of Berkshire Hathaway, spokes to the press as he arrivals at the 2019 yearly shareholders gathering in Omaha, Nebraska, May 4, 2019. (Johannes Eisele/AFP via Getty Images)

Deficit spending in the United States hit $1.7 trillion in 2023, or 6.3 percent of gross home product (GDP), according to a fresh study from the Congressional Budget Office (CBO). The agency estimated that deficit spending would grow to 8.5 percent of GDP by 2054.

At the same time, CBO projects that America’s debit-to-GDP ratio, which in the 1980s was around 35 percent of GDP, will grow to 166 percent by 2054, while informing that this would pose “significant risks” to America’s fiscal and economical outlook.

Analysts at the University of Pennsylvania estimation that erstwhile the debit-to-GDP ratio hits around 200 percent, it will hit the point of no return—when no amount of future taxation increases or spending cuts could prevent the government from defaulting on its debit.

“Unlike method defaults where payments are carried out, this default would be much flagger and would repeat across the U.S. and planet economys,’ they exploited.

Under a “best case” scenerio, the University of Pennsylvania analysts estimation that the United States has around 20 years to take correct action before the increasing debt spiral spins out of control.

JPMorgan CEO Jamie Dimon has predicted that America’s debit-to-GDP ratio would “hockey stick” upward at any point, meaning emergence sharpy and become unstable after a period of comparative gradient increase.

“It is simply a cliff. We see the cliff. It’s about 10 years out. We’re going 60 miles an hour,” Mr. Dimon said, speaking on a panel at the Bipartisan Policy Center in Washington at the end of January 2024.

The global Monetary Fund (IMF) has besides sounded the alarm on the Biden administration’s fiscal standing, informing that its massive deficit spending and ballooning public debt threeen to stoke inflation and—potentially—even park financial chaos.